Companies in Singapore are increasing their expenditure on insurance due to the growing risks
38% of Singapore firms are going to rethink their security measures for the overseas operations.
Insurance has become the principal instrument helping Singapore businesses cope with the increasing geopolitical and economic uncertainties as per Beazley’s 2025 Geopolitical and Economic Risk & Resilience Report.
The study involving 3,500 top business executives discovered that companies are turning more and more to the insurance solutions that are far from being merely traditional backers.insuranceasia.com
Approximately 32% of companies based in Singapore intend to consider policies that comprise risk and crisis management this year, which is an increase from 20% in 2024.
Beazley explained that companies are applying insurance as a means to see off to new areas, guarantee energy and mineral resources, and lessen the impacts of cybersecurity and political interference, etc.
Nothing less than 74% of Singapore managers pointed to geopolitical and economic uncertainty as the most important factor hindering their growth, and this percentage is going to inch up to 75% by the middle of 2025.
The issue of inflation has also gained more attention, as 30% of the respondents regarded it as the most serious risk factor for this year, as opposed to 25% for 2024.
In addition to that, 26% named economic uncertainty as their number one threat, which is an increase of 6% from the previous year.
When it comes to resilience building, 38% of Singapore companies will be hardening their overseas operation security, while the proportion was 25% in 2024.
Moreover, 90% of the companies are planning to change their suppliers or shift their operations as a consequence of the geopolitical tensions, while the figure was 84% since January.
Even if there are such difficulties, a lot of corporations still invest in the areas of high-risk and high-reward, like artificial intelligence, fusion energy, and lunar exploration.
In order to facilitate such initiatives, 37% of firms are increasing their budget for risk management and loss prevention, which was 21% at the beginning of 2024.
“Innovative insurance solutions, including political risk coverage, parametric supply chain protection, and crisis management services, are ensuring that the businesses act confidently in the uncertain environment,” Bethany Greenwood, the CEO of Beazley Furlonge Limited & Group Head of Specialty Risks Beazley.
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